Economics- Sectors of The Indian Economy
Short Answer Type Questions
Q.1) Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Ans) List of jobs for adults working for a living-Agriculture, fisheries, mining, construction work, weaving cloth, making machine from Iron, Bank, Insurance, Tourism Transport, Educational Institutions, Health Services etc.
| Primary Sector | Secondary Sector | Tertiary Sector |
|---|---|---|
| Agriculture, Fisheries, Mining. | Construction work, Weaving Cloth, Making machine from Iron | Transport, Bank, Insurance, Tourism, Educational Institutions, Health Services etc. |
Q.2) Service sector in India employs two different kinds of people. Who are these?
Ans) Service sector in India employs many different kinds of people. At one end, there are a limited number of services that employ highly skilled and educated workers. At the other end large number of workers are engaged in services such as small shops, repair work, transportation etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available for them.
Q.3) Workers are exploited in the unorganized sector. Do you agree with this view? Give reasons in support of your answer.
Ans) Yes, it is true that workers are exploited in the unorganised sector because unorganised sector is characterised by small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed. Jobs here are of low wages and often not regular. There is no provision for overtime, paid leave, leave due to sickness etc. Employment is not secured. People can be asked to leave without any reason when there is less work, such as during off-seasons, some people may be asked to leave. A lot also depends on the whims of the employer.
Q.4) How are the activities in the economy classified on the basis of employment conditions?
Ans) The activities in the economy are classified into two sectors i.e., organised and unorganised sectors on the basis of employment conditions. Under the organised sector, the terms of employment are communicated to the employees and every employee has to accept these terms and conditions. On the other hand, there is no rule and regulation in the unorganised sector. Under this, the rules are not to be followed.
Q.5) Compare the employment conditions prevailing in the organized and unorganized sectors.
Ans) Organised sector covers those places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Acts etc. It is called organised because it has some formal processes and procedure. Whereas unorganised sector is characterised by small and scattered units which are largely outside the control of government. Jobs here are low paid and often not regular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. People can be asked to leave without any reason.
Q.6) Explain the objective of implementing the MGNREGA 2005.
Ans) The Central Government in India made a law implementing the ‘Right to Work’ in about 625 districts of India. It is called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005). The main characteristics of this act are as follows:-
- This act is not only a program but a law under which a legal guarantee has been given to obtain employment.
- Panchayati Raj institutions will have an important role in its planning and implementation.
- Its main objective is to provide at least 100 days of employment every year to an adult person from every rural and urban poor and lower middle class family.
- Under this, it is mandatory to provide work within 15 days on demand.
- If the work will not be provided within the stipulated time, unemployment allowance will be given to the person concerned.
Q.7) What is the relation between the sectors of the economy and the national income?
Ans) Relation between the sectors of the economy and the national income – To calculate the national income of a nation or GDP, the primary, secondary and tertiary sectors of that nation are considered as the base. For this, first of all the production obtained from these areas is calculated, then the monetary value obtained from these different areas is added. In this way, the country’s GDP and national income figures are obtained.
Experience shows that along with economic development, where income from primary, secondary and tertiary sectors increases, their comparative contribution also changes. However, the share of the primary sector to the total national income gradually decreases and the contribution of the tertiary or service sector keeps on increasing.
Q.8) With the help of example explain the primary and secondary sector of the economy.
Write two characteristics of secondary sector.
Ans) Primary sector – The activities which are directly based on natural resources are called primary sector. Agriculture, can be taken for example. Many natural factors for the production of crops, e.g., one has to depend on soil, rain, sunlight, wind etc. Therefore agricultural produce is a natural product. Similarly forest, animal husbandry, minerals etc. are taken under the primary sector.
Secondary sector – Under the activities of this sector, natural products are converted into other forms through manufacturing. For example, making of machine from iron or manufacturing of cloth from cotton etc. This is the next step after primary activities. In this sector, goods are not directly produced in nature but they are done by human activities. These activities can be done in a factory or home. Since this sector is connected with different types of industries respectively, so it is called industrial sector also.
Q.9) Discuss the contribution of service sector to agriculture and national income.
Ans) Contribution to agriculture – The work of securing farmers from natural calamities is also done by the service sector. The uncertainty and risk of agricultural produce are removed through Varsha Bima Yojana, Crop Insurance Scheme, Agricultural Income Insurance Scheme and National Agricultural Insurance Scheme etc. Along with this, the service sector helps in increasing production by providing capital to the farmers for the purchase of improved fertilizers, seeds etc. Thus, the service sector helps in enhancing agricultural productivity.
Contribution to the national income – Today, whether urban or rural, the service sector has an important contribution in all. This is the reason that more than half of the national income now comes from the service sector. The activities of the service sector are increasing rapidly with the economic development of the nation, so the contribution of the service sector in the national income is increasing continuously.
Q.10) Distinguish between open unemployment and disguised unemployment.
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Q.11) Explain how public sector contributes to the economic development of a nation.
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Q.12) The workers in the unorganized sector need protection on the following issues: wages, safety and health. Explain with examples.
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